NPS Pharmaceuticals, Inc. (NASDAQ: NPSP), a specialty pharmaceutical
company developing orphan therapeutics for rare gastrointestinal and
endocrine disorders, today reported its results for the third quarter of
2012.

NPS reported a net loss of $3.3 million or $0.04 per diluted share for
the third quarter of 2012, compared to a net loss of $12.3 million or
$0.14 per diluted share for the third quarter of 2011. Cash and
investments totaled $118.7 million at September 30, 2012, compared with
$162.2 million at December 31, 2011. NPS continues to expect to end the
year with at least $92 million of cash and investments.

“With last month’s unanimous recommendation by FDA’s Gastrointestinal
Drugs Advisory Committee, Gattex is poised to become the first
significant medical advance for the long-term treatment of SBS in nearly
40 years,” commented Francois Nader, MD, president and chief executive
officer, NPS Pharmaceuticals. “Recent data from the Gattex clinical
program demonstrate life-changing findings for patients. Specifically,
one in seven patients has now achieved complete independence from
parenteral support in our ongoing long-term STEPS 2 study. As a result
of the committee’s positive vote, we will now be proceeding with the
hiring of several key commercial positions and finalizing Gattex
launch-readiness. This is a transformational period for NPS and we are
thrilled to be one step closer to achieving our goal of bringing Gattex
to the market early next year and addressing the unmet needs of people
with short bowel syndrome.”

Dr. Nader added: “We also continue to make strong progress towards
completing our Biologic License Application for Natpara as the first
replacement therapy for hypoparathyroidism. We remain on track to
deliver a submission in line with our mid-2013 guidance.”

Pipeline and other business highlights

Gattex® (teduglutide) in short bowel syndrome

On October 16, 2012, the U.S. Food and Drug Administration’s (FDA)
Gastrointestinal Drugs Advisory Committee voted unanimously to
recommend approval of Gattex® (teduglutide) for adults with short
bowel syndrome (SBS). The committee’s recommendation will be
considered by the FDA in its review of the company’s New Drug
Application (NDA). The Prescription Drug User Fee Act (PDUFA) action
date for the Gattex NDA is December 30, 2012.

NPS recently reported that five additional patients successfully
achieved independence from parenteral nutrition (PN) and/or
intravenous fluids (IV) in STEPS 2, an ongoing 24-month, open-label
study in adult SBS. To date, 12 patients, or one out of seven, have
achieved independence from PN/IV while on Gattex therapy in STEPS 2.
Ten of the 12 patients were able to discontinue PN/IV after a year or
more on Gattex reinforcing the positive effects of the long-term use
of the drug. NPS expects STEPS 2 to complete in early 2013 and will
report full results thereafter.

At the American College of Gastroenterology Annual Scientific Meeting,
investigators reported data related to the seven patients who
previously achieved complete independence from PN/IV in STEPS 2.
Demographics and disease characteristics for these patients varied
widely. The duration of time the patients had been treated with Gattex
at the time their PN/IV was discontinued ranged from six months to
nearly two years.

NPS continues to be on track to submit its Biologic License
Application (BLA) to the FDA by mid-2013 seeking marketing approval of
Natpara for hypoparathyroidism.

At the Annual Meeting of the American Society for Bone and Mineral
Research (ASBMR) investigators presented additional findings from the
Phase 3 REPLACE study of Natpara® (rhPTH [1-84]) that showed Natpara
initiated bone remodeling as demonstrated by significant increases in
bone turnover markers. Investigators also reported results from RELAY,
an eight-week study that evaluated 25μg or 50μg daily doses of Natpara
and concluded that such dosages may be sufficient for a small
percentage of patients with hypoparathyroidism.

NPSP790 and NPSP795 (calcilytics)

The clinical development and manufacturing planning processes are
underway for the clinical proof-of-concept study of the company’s
calcilytic compounds, NPSP790 and NPSP795. NPS believes calcilytics
may have clinical application in treating rare disorders involving
increased calcium receptor activity, such as autosomal dominant
hypocalcemia with hypercalciuria or ADHH.

On November 15, 2012, the company will receive a cash payment of $15.0
million for the Sensipar royalties earned during the third quarter of
2012. The remaining $8 million of Sensipar royalties will be retained to
repay a royalty advance received in August 2011 from Amgen.

Research and development

Research and development expenses were $18.0 million for the third
quarter of 2012, compared with $20.2 million for the third quarter of
2011. The decrease in research and development expenses was primarily
due to a reduction in costs associated with clinical development
activities and the production of prelaunch Gattex inventory.

General and administrative

General and administrative expenses were $8.3 million for the third
quarter of 2012, compared with $6.4 million for the third quarter of
2011. The increase in general and administrative expenses was primarily
due to commercial-readiness activities for Gattex.

Interest expense

Interest expense was $4.4 million for the third quarter of 2012 and
$10.6 million for the third quarter of 2011. Interest expense is largely
attributable to non-recourse debt secured by the company’s
Sensipar/Mimpara, REGPARA, and Preotact royalties. The decline in
interest expense was primarily attributable to a reduction in the
outstanding principal and interest rate associated with
Sensipar/Mimpara-secured non-recourse debt.

Cash and investments

At September 30, 2012, the company’s cash, cash equivalents, and
marketable investment securities totaled approximately $119 million
compared with $162 million at December 31, 2011.

Long-term debt

At September 30, 2012, the company’s only recourse debt was $16.5
million in 5.75% convertible notes due in 2014.

All other debt on the company’s balance sheet is non-recourse and solely
secured by its royalty rights related to Sensipar/Mimpara, Preotact, and
REGPARA. After repayment of these obligations, as set forth in the
agreements, the cash flows from the royalties will be paid to NPS.

The following table reflects the company’s non-recourse debt at
September 30, 2012 and December 31, 2011:

In millions

September 30,

2012

December 31,2011

Non-recourse debt:

Sensipar/Mimpara-secured

$86.3

$126.8

Preotact-secured

43.8

48.3

REGPARA-secured

36.3

36.3

Total non-recourse debt

166.4

211.4

Less current portion

7.0

19.3

Total long-term non-recourse debt

$159.4

$192.1

Conference Call Information

NPS will host a conference call beginning today at 8:30 a.m. Eastern
Time. To participate in the conference call, dial (800) 299-9086 and use
pass code 55167232. International callers may dial (617) 786-2903, using
the same pass code. In addition, a live audio of the conference call
will be available over the Internet. Interested parties can access the
event through the NPS website, http://www.npsp.com.

For those unable to participate in the live call, a replay will be
available at (888) 286-8010, with pass code 27933265, until midnight
Eastern Time, November 19, 2012. International callers may access the
replay by dialing (617) 801-6888, using the same pass code. The webcast
will also be available through the NPS website for the same period.

About NPS Pharmaceuticals

NPS Pharmaceuticals is a biopharmaceutical company focused on bringing
orphan products to patients with rare disorders and few, if any,
therapeutic options. NPS is advancing two late-stage registration
programs. A New Drug Application is undergoing FDA review for Gattex®
(teduglutide) as a treatment for adults with short bowel syndrome (SBS)
and a Biologic License Application is being prepared for Natpara®
(rhPTH[1-84]) in adult hypoparathyroidism. NPS' earlier stage pipeline
includes two calcilytic compounds, NPSP790 and NPSP795, with potential
application in rare disorders involving increased calcium receptor
activity, such as autosomal dominant hypocalcemia with hypercalciuria
(ADHH). NPS complements its proprietary programs with a royalty-based
portfolio of products and product candidates that includes agreements
with Amgen, GlaxoSmithKline, Janssen Pharmaceuticals, Kyowa Hakko Kirin,
and Nycomed, a Takeda company.

About Gattex® (teduglutide) in adult short bowel syndrome

Gattex is a novel, recombinant analog of human glucagon-like peptide 2,
a protein involved in the rehabilitation of the intestinal lining. It
has been developed to reduce dependence on parenteral nutrition (PN) and
intravenous fluids (IV) in adult patients with short bowel syndrome
(SBS). Significant reductions in mean PN/IV infusion volume from
baseline to end of treatment were seen in the Phase 3 studies of Gattex.
In addition, some patients were able to be weaned off PN during these
trials. The most common treatment-emergent adverse events with Gattex in
the placebo-controlled studies that occurred at a higher frequency with
Gattex were abdominal pain, upper respiratory tract infections, nausea,
injection site reactions, abdominal distension, headaches, and
gastrointestinal stoma complications.

Natpara® (rhPTH [1-84]) in hypoparathyroidism

Natpara is a bioengineered replica of human parathyroid hormone that is
being developed by NPS for adults with hypoparathyroidism, a rare
endocrine disorder that is characterized by insufficient levels of
parathyroid hormone, the body’s principal regulator of calcium and
phosphorus. In the randomized, placebo-controlled REPLACE study,
treatment with Natpara resulted in significant reductions in calcium and
active vitamin D supplements. Overall rates of adverse events during the
24-week treatment period were similar (90% vs. 96% Natpara and placebo,
respectively). The spectrum of adverse events reflected underlying
disease pathophysiology with most common being paresthesia, muscle
spasms, headache, and hypocalcemia.

"NPS," "NPS Pharmaceuticals," "Gattex," and "Natpara" are the company's
trademarks. All other trademarks, trade names or service marks appearing
in this press release are the property of their respective owners.

Statements made in this press release, which are not historical in
nature, constitute forward-looking statements for purposes of the safe
harbor provided by the Private Securities Litigation Reform Act of 1995.
These statements are based on the company's current expectations and
beliefs and are subject to a number of factors and uncertainties that
could cause actual results to differ materially from those described in
the forward-looking statements. Forward looking statements include, but
are not limited to, statements concerning our future financial
performance. Risks associated to the company's business include, but are
not limited to, the risks associated with any failure by the company to
successfully complete its preclinical and clinical studies within the
projected time frames or not at all, the risk of not gaining marketing
approvals for Gattex and Natpara, the risks associated with the
company's strategy, global macroeconomic conditions, the impact of
changes in management or staff levels, the effect of legislation
effecting healthcare reform in the United States, as well as other risk
factors described in the company's periodic filings with the U.S.
Securities and Exchange Commission, including its Annual Report on Form
10-K and Form 10-Qs. All information in this press release is as of the
date of this release and NPS undertakes no duty to update this
information, whether as a result of new information, future events or
otherwise.